Will Boeing stay airborne next year?

David Russell (david.russell@optionmonster.com)
December 27, 2013

Boeing has led the Dow Jones Industrial Average higher all year, and traders expect a strong start to 2014.

optionMONSTER's Heat Seeker monitoring program detected he purchase of about 4,000 February 155 calls for $0.39 and the sale of about 1,800 February 140 calls for $3.50. Volume was below open interest at the lower strike, which indicates that existing long-call positions were closed and rolled higher.

The transactions occurred over about two hours in the morning, so it's not clear if they were the work of a single trader. Regardless, the positions collected some $474,000 in credit and remain exposed to further upside in the aerospace giant.

Increasing the number of contracts also gives them potentially greater leverage if a major breakout occurs. Earnings usually come out in late January, so they could be hoping for a strong report. (See our Education section)

BA is down 0.87 percent to $137.06 in afternoon trading but is up more than 80 percent so far this year. That's well above American Express' 55 percent gain as the second-best performer in the iconic list of stocks established by Charles Dow in 1896.

Overall option volume is almost twice the daily average in BA so far this session, with calls accounting for a bullish two-thirds of the total.

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